Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Provision (benefit) for income taxes calculated based on components of earnings (loss) before income taxes

Continuing operations	2014			2013		2012
U.S.	$	(53	)	$	86	$	32
Non-U.S.		271			249		296

	$	218		$	335	$	328

Discontinued operations	2014			2013			2012
U.S.	$	(19	)	$	(8	)	$	—
Non-U.S.		(4	)		(10	)		(5	)

	$	(23	)	$	(18	)	$	(5	)

Provision (benefit) for income taxes

	2014			2013			2012
Current:
U.S.	$	7		$	7		$	(4	)
Non-U.S.		103			116			117

		110			123			113

Deferred:
U.S.								8
Non-U.S.		(18	)		(3	)		(13	)

		(18	)		(3	)		(5	)

Total:
U.S.		7			7			4
Non-U.S.		85			113			104

Total for continuing operations		92			120			108
Total for discontinued operations								(3	)

	$	92		$	120		$	105

Reconciliation of the provision for income taxes

	2014			2013			2012
Tax provision on pretax earnings from continuing operations at statutory U.S. Federal tax rate	$	76		$	117		$	115
Increase (decrease) in provision for income taxes due to:
Differences in income taxes on foreign earnings, losses and remittances		(18	)		(29	)		(5	)
Changes in valuation allowance		37			37			(7	)
Tax audits and settlements		2			1			(1	)
Other items		(5	)		(6	)		6

Provision for income taxes	$	92		$	120		$	108

Significant components of deferred tax assets and liabilities and deferred taxes included in the Consolidated Balance Sheets

Significant components of the Company's deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows:

	2014			2013
Deferred tax assets:
Accrued postretirement benefits	$	58		$	60
Asbestos-related liabilities		152			157
Foreign tax credit		376			356
Operating and capital loss carryovers		464			489
Other credit carryovers		37			46
Accrued liabilities		85			89
Pension liability		117			47
Other		65			73

Total deferred tax assets		1,354			1,317
Deferred tax liabilities:
Property, plant and equipment		127			126
Exchangeable notes					10
Intangibles		34			27
Other		36			59

Total deferred tax liabilities		197			222
Valuation allowance		(1,036	)		(990	)

Net deferred taxes	$	121		$	105

Deferred taxes are included in the Consolidated Balance Sheets at December 31, 2014 and 2013 as follows:

	2014			2013
Prepaid expenses	$	39		$	64
Other assets		203			237
Deferred taxes		(121	)		(196	)

Net deferred taxes	$	121		$	105

Reconciliation of the gross unrecognized tax benefits

	2014			2013			2012
Balance at January 1	$	100		$	97		$	125
Additions and reductions for tax positions of prior years		(13	)		(3	)		8
Additions based on tax positions related to the current year		10			9			7
Reductions due to the lapse of the applicable statute of limitations		(8	)		(2	)		(21	)
Reductions due to settlements		(1	)					(26	)
Foreign currency translation		(11	)		(1	)		4

Balance at December 31	$	77		$	100		$	97


Unrecognized tax benefits, which if recognized, would impact the Company's effective income tax rate	$	70		$	92		$	89


Accrued interest and penalties at December 31	$	29		$	35		$	33


Interest and penalties included in tax expense for the years ended December 31	$	(2	)	$	1		$	(6	)

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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